Jiuzi's Strategic Move into Institutional-Grade Crypto Custody: A Catalyst for Institutional Adoption and Regulatory Alignment

The cryptocurrency industry is undergoing a seismic shift as institutional players increasingly demand robust custody solutions that align with traditional financial standards. Jiuzi Holdings (Nasdaq: JZXN) has positioned itself at the forefront of this transition, leveraging a strategic partnership with EXSAT.NETWORK LTD-a core organization within the EOS blockchain ecosystem-to develop a $3 billion institutional-grade crypto custody business. This move not only underscores Jiuzi's ambition to capitalize on the growing institutional demand for digital assets but also highlights its alignment with evolving regulatory frameworks, a critical factor for long-term viability in the sector.

A Partnership Built for Institutional Scale

Jiuzi's collaboration with EXSAT.NETWORK LTD, announced on December 22, 2025, is designed to create a global custody framework that addresses the unique needs of institutional clients. The partnership emphasizes multi-signature and distributed custody models, on-chain transparent auditing, and compliance operations, all of which are essential for institutional trust in crypto asset management. By integrating EXSAT's expertise in blockchain infrastructure and security, Jiuzi aims to build a scalable solution that mitigates risks associated with self-custody while adhering to regulatory expectations.

The scope of the partnership extends beyond basic custody to include value-added services such as yield management, clearing and settlement, and innovative financial products. This diversification aligns with broader industry trends, where institutional investors seek not only security but also opportunities to generate returns from their crypto holdings. For Jiuzi, this represents a strategic pivot from its traditional energy and fintech pillars into a high-growth digital asset sector, with the potential to unlock significant revenue streams.

Regulatory Alignment: A Prerequisite for Institutional Trust

Regulatory compliance remains a cornerstone of Jiuzi's strategy. The company has explicitly stated that it will not self-custody digital assets but will instead rely on third-party providers with top-tier security standards. This approach aligns with the U.S. Securities and Exchange Commission's (SEC) no-action letter, which permits state-chartered trust companies to custody crypto assets under specific conditions. By outsourcing custody to vetted partners, Jiuzi mitigates regulatory exposure while ensuring adherence to evolving compliance requirements.

The Office of the Comptroller of the Currency (OCC) has also played a pivotal role in shaping the regulatory landscape. Recent conditional approvals for national trust bank charters-granted to entities like BitGo Bank & Trust and Fidelity Digital Assets-signal a broader acceptance of crypto custody services within the federal banking framework. While Jiuzi has not yet secured an OCC charter, its emphasis on third-party risk management and transparent operations positions it to navigate regulatory scrutiny effectively. Analysts note that the company's commitment to regular board reporting and material SEC disclosures further reinforces its compliance posture.

Institutional Adoption: Fueling Growth Through Capital and Partnerships

Jiuzi's aggressive fundraising efforts underscore its institutional ambitions. The company expanded its private placement plan from $12 million to $1 billion, a move that reflects strong investor confidence in its crypto pivot. Proceeds from this capital raise will fund advanced custody infrastructure, storage solutions, and strategic acquisitions, all of which are critical for scaling to the $3 billion target. This financial backing also enables Jiuzi to compete with established players in the custody space, such as Coinbase and BitGo, by offering tailored services to institutional clients.

In October 2025, Jiuzi further solidified its institutional credentials by partnering with the SOLV Foundation to allocate Bitcoin holdings toward staking and yield products. This collaboration not only diversifies revenue streams but also aligns with the growing demand for passive income generation in the crypto market. By integrating these services into its custody framework, Jiuzi addresses a key pain point for institutional investors: the need to balance security with profitability.

Conclusion: A Strategic Bet on the Future of Crypto Custody

Jiuzi's entry into institutional-grade crypto custody is a calculated move that leverages partnerships, regulatory alignment, and capital infusion to capture a rapidly expanding market. The company's focus on multi-signature and distributed custody models, combined with its adherence to compliance frameworks, positions it to attract institutional clients seeking secure and scalable solutions. While the absence of specific certifications like ISO 27001 or OCC approval remains a caveat, the broader regulatory environment is trending toward institutionalization, and Jiuzi's proactive approach suggests it is well-positioned to benefit from this shift.

As the crypto industry matures, the ability to meet institutional demands for security, transparency, and compliance will determine market leaders. Jiuzi's strategic pivot, backed by a $1 billion capital raise and a $3 billion custody target, signals its intent to become a major player in this evolving landscape. For investors, the company's alignment with regulatory trends and institutional adoption dynamics presents a compelling case for long-term growth.